The Research Of Government’s Supervision Strategy On Payment And Settlement System

As the financial infrastructure serving for money, the paymentand settlement system is of much importance in the financial reformand construction.The safe and efficient operation of the payment andsettlement system affects the economy.It also refers to importantsignificance in terms of financial infrastructure, financialsecurity, financial stability and international financial centreconstruction. The characteristics of the payment and settlementsystem give rise to its attributes of public product, so as the rolefor the public management， the government should intervene andexecute regulation when the industry is in the condition of marketfailure. China’s payment and settlement supervision system is animportant part of the payment and settlement system, which maintainsthe safety and efficiency of payment and settlement system. Thisarticle uses the combined methods of case analysis,qualitative andquantitative analysis, combination of theory and practice, whichaims at exploring the institution design on the payment andsettlement supervision system,not only for the long-term effect but also for the short-term effect.According to the thinking path of discover problems, analyzeproblems and then solve problems,this article derives from theFisher Equation Analysis, which states the importance of monetaryvelocity for the social economy, meanwhile expounds the influenceof the monetary velocity on the payment and settlement system. Andthen (the article) focuses on stating the payment and settlementsystem’s regulatory objectives for safety and efficiency via thetheories as the Coase transaction cost theory, Stiglitz’s theory ofgovernment intervention and public interest theory of governmentregulation.(The article) generally follows the elements’classification of the payment and settlement system such as the meansof payment, payment services organizations to focus on the currenthot issues and their causes, and then draws lessons from the foreignsupervision experience, to put out the payment and settlement systemsupervision optimization strategy on the issues. For example,thearticle states the imagination of regulatory framework and increaseof the regulatory target content about enhancing the relevance ofmonetary policy. Apart from that, it also puts forward the practicalsuggestions of adopting the foreign payment system’s respectivefinancing and short-term funds pricing platform function.The full text is divided into six chapters, each chapter is asfollows:Chapter1. Introduction. The part carries on the elaboration tothe background, significance, research status of the payment and settlement system of government regulation, and explains theresearch content and methods. Then the content of the payment andsettlement system, its public product attributes, concepts ofgovernment supervision and government‘s public management functionsare defined.Chapter2. Theory description. After the description of China’spayment settlement system, Coase transaction cost theory，Stiglitz’s government intervention theory and public interesttheory of government’s regulation are introduced respectively.Chapter3. Study on today’s supervision of China’s paymentsettlement system. According to the dimensions that compromise ofthe payment and settlement system supervision basis, means ofpayment, payment services organizations, payment instruments andelectronic currency, the study was take on and summed up the commonreasons.Chapter4. Introducing the experience of foreign paymentsettlement system. Refering the advanced financial state’spractice, according to the actual situation of our country, thearticle summarizes the profitable experience that our country coulddraw from.Chapter5. Proposals of payment and settlement systems’supervision for our government. In this part, according to issuesof payment and settlement system in the third chapter whichinvolves the means of payment, payment system, payment serviceorganizations,the strategy was put forward respectively, which formed into the proposals for system designs.Chapter6.The research conclusion. This part summarizes theabove research, the innovation and deficiencies are put out,meanwhile relevant research was looked ahead.